In the above figure, at the equilibrium level of real GDP, there is
A) positive saving.
B) negative saving.
C) zero saving.
D) a negative tax rate.
Answer: A) positive saving.
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Which of the following statements is TRUE?
A) State and local governments cannot default on their bonds. B) Bonds issued by state and local governments are called municipal bonds. C) All government issued bonds—local, state, and federal—are federal income tax exempt. D) The coupon payment on municipal bonds is usually higher than the coupon payment on Treasury bonds.
Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. Suppose Kate enters the market first and chooses her output before Alice. What is Kate's profit maximizing output?
A. 2,000 B. 1,333.34 C. 1,000 D. 4,000
A bank's net interest margin can be adversely affected by all of the following except
A) credit risk. B) interest rate risk. C) leverage risk. D) stock market risk.
Ceteris paribus, with a fixed exchange rate, if people in Argentina decide to buy more Russian oil, this causes a market ________ of Russian currency and creates a balance-of-payments ________ for Russia.
A. shortage; deficit B. surplus; deficit C. shortage; surplus D. surplus; surplus